Thank you all for your answers regarding the use of a broker to purchase an apartment (or not). This next question I am naive about, but why not ask it. In the event I sell my place, I would have to go into a rental apartment until I find something new. How easy is that to do with a dog and cat in Manhattan, what happens if I find a place in less than a year? Am I going to have to pay rent on an... [more]
Thank you all for your answers regarding the use of a broker to purchase an apartment (or not).
This next question I am naive about, but why not ask it.
In the event I sell my place, I would have to go into a rental apartment until I find something new. How easy is that to do with a dog and cat in Manhattan, what happens if I find a place in less than a year? Am I going to have to pay rent on an empty apartment after I close on a new condo? Any suggestions for "reasonable" month to month apartments that take pets?
I don't know in this market if anyone would entertain a sales contingency in their contract meaning we would agree on a price for their condo but I would not be obligated to buy it until I sell my place. (I think that's what it is called). I don't know how to proceed on something like this, but it seems to me that for a seller that is not in a rush, it will give them peace of mind that they have a buyer with a non-refundable deposit that WILL purchase their apartment as soon as they can. (I also don't know if I must name a price I would accept on my place for the seller to agree to this).
Any feedback folks? Is this do-able in this market now (or ever).
One last question- does anyone know if bridge loans are on their way back, if so that would alleviate the whole process I listed above and all me to go from the sale of my place to my new purchase directly without interim housing.
Many thanks for your time and answers.
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Response by w67thstreet
about 15 years ago
Posts: 9003
Member since: Dec 2008
Like a rat Swimming away on a life raft, to only go back and eat the dead.
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Response by front_porch
about 15 years ago
Posts: 5321
Member since: Mar 2008
Trade-ups are rocky. You end up with a better apartment, but there's no good way of steerage through the passage.
Month-to-month apartments, also known as corporate apartments, cost a fortune. They're usually a thousand dollars a month more than comparable 12-month lease apartments, because they're basically priced to compete with hotels. You could try, I guess, to find something illegal on craigslist, but then you'd essentially be moving all your furniture into storage and just showing up at an illegal sublet with a suitcase and a pet carrier.
However, they're probably what you're stuck with (or getting a hotel and kenneling the pets).
The market now is slow compared to the past couple of years, but not so bad that I would advise a seller to accept a sales contingency. (for one, if they take a sales contingency, the deposit IS refundable). If you do get a seller to accept a sales contingency, they'll probably be looking for a compensation of a few percent on price.
Another possibility is that you sell and ask your buyer to let you rent back your own place until you move, (a PCA, or post-closing agreement) but that's fairly detrimental to the buyer. If they accept it all, the equitable amount would be that you pay mortgage costs + maintenance cost plus a risk premium, so again we're running into the thousands here.
GL!
ali r.
DG Neary Realty
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Response by apt23
about 15 years ago
Posts: 2041
Member since: Jul 2009
Have you considered just taking a standard rental for a year of two and studying the market for a while. You can do a rent vs buy analysis and see how you come out. There may be bulls and bears on this board but very few would say that the market is going higher anytime soon -- although interest rates might go up. But there are many threads on this board that contend when interest rates go up, prices go down and that is a distinct long term advantage. Rhino is a poster who posted heavily on that subject with analytic back-up.
Plus, taking your time would assure that you are not making a mistake with such an important financial decision. It also takes a long time to find the perfect apt/investment. By your own admission, you have a lot to learn. Why would a two year rental be so bad? If you invest your downpayment wisely and conservatively you might be way ahead after a couple of years -- knowledge and capital appreciation. What could be bad?
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Response by truthskr10
about 15 years ago
Posts: 4088
Member since: Jul 2009
Agreed, you should not be afraid of going to a regular rental. In fact, you'd be surprised how long it may take between negotiation, board approvals, etc.
I'd put most you of your stuff in storage.
Find an apartment based on price as it's not as improtant where you are temporarily home. In addition, I'd insist on a 6 month surrender agreement, meaning, you have the option to leave the apartment in 6 months. Even offer half a month's rent for the option. Between that and contract timing, you'll never be committed to more than max, 3 months of rent at any time. Calculate these extra costs as closing costs on your new place and bid accordingly.
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Response by damier212
about 15 years ago
Posts: 124
Member since: Aug 2009
thank you all......and GREAT comments Truthskr10 !
Like a rat Swimming away on a life raft, to only go back and eat the dead.
Trade-ups are rocky. You end up with a better apartment, but there's no good way of steerage through the passage.
Month-to-month apartments, also known as corporate apartments, cost a fortune. They're usually a thousand dollars a month more than comparable 12-month lease apartments, because they're basically priced to compete with hotels. You could try, I guess, to find something illegal on craigslist, but then you'd essentially be moving all your furniture into storage and just showing up at an illegal sublet with a suitcase and a pet carrier.
However, they're probably what you're stuck with (or getting a hotel and kenneling the pets).
The market now is slow compared to the past couple of years, but not so bad that I would advise a seller to accept a sales contingency. (for one, if they take a sales contingency, the deposit IS refundable). If you do get a seller to accept a sales contingency, they'll probably be looking for a compensation of a few percent on price.
Another possibility is that you sell and ask your buyer to let you rent back your own place until you move, (a PCA, or post-closing agreement) but that's fairly detrimental to the buyer. If they accept it all, the equitable amount would be that you pay mortgage costs + maintenance cost plus a risk premium, so again we're running into the thousands here.
GL!
ali r.
DG Neary Realty
Have you considered just taking a standard rental for a year of two and studying the market for a while. You can do a rent vs buy analysis and see how you come out. There may be bulls and bears on this board but very few would say that the market is going higher anytime soon -- although interest rates might go up. But there are many threads on this board that contend when interest rates go up, prices go down and that is a distinct long term advantage. Rhino is a poster who posted heavily on that subject with analytic back-up.
Plus, taking your time would assure that you are not making a mistake with such an important financial decision. It also takes a long time to find the perfect apt/investment. By your own admission, you have a lot to learn. Why would a two year rental be so bad? If you invest your downpayment wisely and conservatively you might be way ahead after a couple of years -- knowledge and capital appreciation. What could be bad?
Agreed, you should not be afraid of going to a regular rental. In fact, you'd be surprised how long it may take between negotiation, board approvals, etc.
I'd put most you of your stuff in storage.
Find an apartment based on price as it's not as improtant where you are temporarily home. In addition, I'd insist on a 6 month surrender agreement, meaning, you have the option to leave the apartment in 6 months. Even offer half a month's rent for the option. Between that and contract timing, you'll never be committed to more than max, 3 months of rent at any time. Calculate these extra costs as closing costs on your new place and bid accordingly.
thank you all......and GREAT comments Truthskr10 !